As their buying power nears $1 trillion, the 46 million Hispanics now living in the United States wield a powerful influence on the American consumer economy. Between 1995 and 2007, expenditures by Hispanic consumer units grew more than twice as fast as expenditures by non-Hispanic consumers.
The impact of Latinos on American society will get even stronger over the coming decades. The 133 million Hispanics expected to be living in the U.S. in 2050 will account for 30% of all Americans. The Latino population alone will be larger than the entire U.S. population was in 1940.
This completely new Packaged Facts report highlights the attitudes and behavior of Hispanic adults across age groups and generations from Gen-Y and Gen-X Latinos through younger and older Boomers. One of the most striking findings of the report is that there are nearly uniform differences between Hispanic and non-Hispanic consumers across all age groups. That is, most of the consumer attitudes and behavior of Gen-Y and Gen-X Hispanics are different from those of their non-Hispanic counterparts, while Latino Boomers think and act differently than non-Hispanic boomers. This suggests that strong cultural ties continue to differentiate Hispanics from non-Hispanics, regardless of age and degree of acculturation.
The first section of the report highlights trends and opportunities shaping the Hispanic market and assesses the buying power of Hispanic consumers. The next section contains chapters on the demographic characteristics of the Hispanic population and the economic status of Latinos today. Other chapters provide an in-depth analysis of immigration and acculturation trends as well as profiles of the seven largest Hispanic national segments. The next chapter analyzes the core values of Hispanics. The next section of the report provides an in-depth analysis of the attitudes and behavior of Hispanic consumers across generational lines. One chapter assesses how Hispanics of different ages manage and spend money. Another chapter highlights the attitudes and behavior of Latino consumers in key areas including fashion and personal care, eating at home and health and wellness. The final chapters of the report offer a detailed analysis of leisure and entertainment patterns and media usage trends.
Read an excerpt from this report below.Research Methodology
The Hispanic (Latino) Market in the U.S.: A Generational View, 7th Edition, is based on information collected directly from firms active in the Hispanic market as well as a comprehensive analysis of relevant industry and trade publications. Primary research sources used in the report include the Simmons Market Research Bureau Summer 2008 National Consumer Survey and a survey of 1,000 Hispanic adults conducted by Los Angeles, California-based New American Dimensions (NAD) in January-February 2008. Census Bureau sources include the latest available population estimates and projections as well as data from the 2007 American Community Survey and March 2008 Current Population Survey. Other U.S. Government sources include the Consumer Expenditures Survey of the Bureau of Labor Statistics and the Office of Immigration Statistics.
About the Author
Dr. Robert Brown and Ms. Ruth Washton have written more than 30 Packaged Facts reports analyzing demographic trends and marketing strategies in key consumer segments. Topics have ranged from kids to mature consumers to multicultural groups such as Hispanics and African Americans. Dr. Brown and Ms. Washton have co-authored several Financial Times Business Reports on strategic business issues and have provided market and competitor intelligence studies for clients in a variety of industries. Dr. Brown has a B.S. from Georgetown University and a Ph.D. degree from The George Washington University. Ms. Washton has a B.A from Skidmore College and an M.A. from the State University of New York.
Market Insights: A Selection From The Report
Household and Family Income Profile More Favorable
Although lagging in per capita income, the larger-than-average size of Hispanic households and families results in a more favorable profile of household and family income. While the per capita income of Hispanics is lower than that of African Americans, Latinos enjoy higher median household and family incomes than blacks. Although non-Hispanic whites have a per capita income that is twice that of Hispanics, their median household income is only 35% higher. [Table 5-10]
There also are fewer disparities in household and family incomes across national segments. For example, the per capita income of Mexicans is 87% of that of the average Hispanic, but the median income of Mexican households is 95% of the average. [Table 5-11]
Marriage Patterns and Family Structure
Mexican families are larger than the average Hispanic family (4.05 vs. 3.85 people). Mexicans are more likely to be married (50% vs. 48%) and are less likely to be divorced or separated (8% vs. 12%).
Education and Employment
The educational attainment of Mexicans is lower than the average for Hispanics. Only 8% have a bachelor’s degree or more, compared to 12% of Hispanics as a whole. Only 14% are employed in management and professional jobs, compared to 17% of Latinos as a whole.
Per capita income of Mexicans is lower than average ($13,529 vs. $15,190). Mean earnings of full-time, year-round workers also are lower than average. However, Mexicans account for 57% of all Hispanic buying power. [Table 7-2]In the News
Hispanics Emerge as Influential Force in U.S. Consumer Economy
New York, February 27, 2009 - The 46 million Hispanics living in the United States wield powerful influence on the American consumer economy, with buying power that totaled more than $980 billion in 2008, according to market research publisher Packaged Facts in the all-new report, The Hispanic (Latino) Market in the U.S.: A Generational View, 7th Edition.
Packaged Facts has been tracking the U.S. Hispanic market since 1996, and predicts that the buying power of Hispanics will continue to grow at a relatively rapid pace undeterred by the present dreary outlook for consumers as a whole. Ultimately, Latino buying power is projected to reach $1.3 trillion in 2013, with a cumulative growth rate of 31%.
“Latinos will change the profile of American society over the next four decades. The Hispanic population will grow much quicker than other population segments, and Hispanic consumers will represent an increasing percentage of the American consumer base,” says Tatjana Meerman, publisher of Packaged Facts.
Gen-Y Latinos (ages 18-29) and Gen-X Latinos (ages 30-44) are particularly influential, because they control more than 60% of all Hispanic buying power. These young Hispanic adults generate significant consumer spending both for themselves and their families. Consequently, they have a disproportionate impact on a number of industries in the American economy, including entertainment, apparel, and children’s items.
The Hispanic (Latino) Market in the U.S.: A Generational View, 7th Edition highlights the attitudes and behavior of Hispanic adults ranging from Gen-Y and Gen-X Latinos through younger and older Boomers. Trends, opportunities shaping the Hispanic market, demographic characteristics of the Hispanic population, assessment of Hispanic consumers’ buying power, in-depth analysis of immigration and acculturation trends, and much more are examined in the report. Profiles of seven Hispanic national segments (Mexicans, Puerto Ricans, Cubans, Salvadorans, Dominicans, Guatemalans, and Colombians) are also provided.
About Packaged Facts - Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.